The SEC has approved Nasdaq’s framework to tokenize stocks and ETFs on blockchain, enabling faster settlement and paving the way for 24/7 trading-while preserving Wall Street’s core infrastructure.
Under the system, investors can hold tokenized securities in digital wallets, with clearing and settlement still managed by the Depository Trust & Clearing Corporation (DTCC). The move focuses on modernizing post-trade processes, not replacing intermediaries.
Kraken will help distribute tokenized stocks globally, enhancing access for international investors. Industry leaders see this as a signal that the $126 trillion equity market is shifting toward blockchain rails, though within a permissioned framework.
Critics note the U.S. lags behind more agile markets like Kazakhstan’s AIFC, Switzerland, and the UAE, where tokenized assets already trade with greater flexibility. Still, regulators prioritize stability in the $62 trillion U.S. equity market, favoring incremental change.
The decision confirms tokenization’s arrival in public markets-led by established institutions shaping its evolution.